Overtime, the
YMCA has become one of the largest income earning charities in the United
States. Some private health facilities see the YMCA’s exempt status, which
enables them to operate and offer service for less, as an unfair advantage.
Consequently, some private health facilities are frustrated because they view
tax-exempt health facilities like the YMCA as competitors, not as charities.

Recently, the
owner of a series of private health facilities in Kansas spent $45,000 in
campaigns of senators who would build support in the Legislature for property
tax-exemption applicable to private health facilities statewide. The owner of
the private health facilities argues that its largest competitor in nearly
every city home to one of his facilities is a tax-exempt facility. Further, the
owner argues it is time to treat all health club facilities the same.

Is there
anything troubling about the competition argument? Are there any concerns with
adding private health club businesses to the list of organizations receiving
property tax-exemption? What impact, if any, would adding private health clubs
to the list have on the local tax base?